Lenovo Quarterly Revenue Up 43% to RMB183.4 Billion; Shares Surge Over 20%
Lenovo Group's shares jumped over 20% on August 13, 2026, pushing its market value past HK$400 billion. First-quarter revenue rose 43% year-on-year to RMB183.4 billion, and adjusted net profit climbed 176% to exceed US$1 billion, with adjusted margin at 4%. The infrastructure arm's revenue nearly doubled to RMB57.9 billion, operating margin reaching 9.1%. AI server order backlog surged to US$54 billion, matching Dell's. Storage price rises pressured costs, yet IDG revenue still grew.
On August 13, 2026, Lenovo Group's stock surged more than 20%, bringing its year-to-date gain to over 280% and its market value to more than HK$400 billion, a record, up from approximately HK$100 billion at the start of the year. For the fiscal first quarter ended June 30, 2026, revenue came in at RMB183.4 billion (about US$26.9 billion), up 43% year-on-year. Adjusted net profit exceeded US$1 billion for the first time, representing a 176% jump, while the adjusted net margin nearly doubled to 4%.
The Infrastructure Solutions Group (ISG) generated RMB57.9 billion in quarterly revenue, up 98% year-on-year. Its operating margin was 9.1%, an increase of 11.1 percentage points from a year earlier. Over the previous five quarters, ISG's operating margin rose from -2.0% to -0.8%, then -0.2%, 3.6%, and finally 9.1% in the latest quarter. AI server order backlog expanded to over US$54 billion from US$21 billion in the prior quarter, up 2.6 times sequentially. Management said AI-related demand has not yet accounted for more than half of ISG's business, but the order surge reflects a broadening market.
Lenovo bought IBM's x86 server hardware business in 2014 for US$2.3 billion, building on its US$1.25 billion acquisition of IBM's PC division in 2005. As of this quarter, Lenovo's traditional server revenue was the world's second largest, growing nearly 37% year-on-year, the fastest among leading vendors. ISG's overall scale has more than tripled over the past decade, with a 47% compound annual growth rate in the last two years. The company has also completed the rollout of liquid cooling technology at scale.
For comparison, Dell Technologies reported in early June 2026 that its ISG revenue reached US$29 billion, up 181% year-on-year, with an operating margin of 10.5% and an AI server order backlog of US$51.3 billion. Lenovo's latest backlog of about US$54 billion now matches Dell's, and the ISG operating margin gap between the two has narrowed to within 1.4 percentage points. Both companies continue to grow in the global AI infrastructure market.
Storage prices have climbed sharply since 2025, creating cost pressure on consumer electronics and automotive industries, but Lenovo's Intelligent Devices Group (IDG) still posted year-on-year revenue growth. The company relies on its "global resources, local delivery" model and an end-to-end supply chain management system to navigate supply shortages and rising costs.